Debevoise Advises J.P. Morgan Securities and Morgan Stanley as Financial Advisors to AIG in Its Sale of United Guaranty for $3.4 Billion in Cash, Stock

15 August 2016

Debevoise & Plimpton LLP is advising J.P. Morgan Securities LLC and Morgan Stanley & Co. as financial advisors to American International Group, Inc. (“AIG”) in its sale of United Guaranty Corporation (“UGC”), the leading private mortgage insurance company in the United States, to Arch Capital Group Ltd. (“Arch”). Total consideration for the transaction is $3.4 billion, consisting of $2.2 billion of cash, $250 million of newly issued Arch perpetual preferred stock, and $975 million of newly issued Arch convertible non-voting common-equivalent preferred stock. In lieu of receiving the perpetual preferred stock, AIG may elect to receive up to $250 million in pre-closing dividends, subject to regulatory approval, or Arch may provide additional cash consideration.

AIG is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

The Debevoise team is led by partners Andrew L. Bab and Nicholas F. Potter and includes associates Michael G. Stern and AnHa D. Vo.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients’ most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.